TITLE
Recommendation to receive and file City Manager's report on Fiscal Year 2005 excess year-end revenue. (Citywide)
DISCUSSION
On October 18, 2005, Councilmember O’Donnell requested the City Manager to report on
any excess General Fund revenue remaining from Fiscal Year 2005 (FY 05), which ended
on September 30, 2005. The Councilmember suggested that any available resources be
considered to restore FY 06 Library cuts, specifically those related to operating hours and
materials.
Financial Management is in the midst of preparing the audited FY 05 financial statements,
but has completed preparation of unaudited statements. The General Fund unaudited
ending fund balance is $2.1 5 million more than previously projected department estimates-
to-close, though revised revenue and expenditure estimates for FY 06 indicate that these
one-time resources will be required to maintain a balanced budget during FY 06. The major
sources for this variation, which represents only five-tenths of one percent (0.57 percent)
difference from earlier year-end projections, include: approximately $750,000 in one-time,
Citywide department salary savings; and, $1.4 million in net revenue fluctuations. The
higher than anticipated revenue is primarily from parking citations, real property transfer tax,
reimbursements for Police Department contract services, and a Vehicle License Fee
payment from the State.
The higher-than-estimated year-end revenue will be used to create a level of stability in the
General Fund, due to several known changes in operating conditions for FY O6’and given
that there is still over $10 million of unsolved structural deficit to be addressed in FY 07. In
particular, the City recently received notice from the State Department of Finance that
$1,037,000 will be withheld from the City’s expected FY 06 Property Tax In-lieu of Sales Tax
“Triple-Flip” payment due to a State miscalculation in FY 05. In addition, while oil prices
remain high and oil profits for the City...
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